Why Do So Many Restaurants Fail?


The restaurant industry is just crazy. It is so fast-paced, so risky, and so tasty. If you’ve got a restaurant at the minute you’ll be more than aware of this.

But if you’re just about to start up your own business you might be a bit naive to the prospect. The restaurant industry is glamorous if you go down the right route, and there is a lot of money to be made from it if you play your cards right. But it is notoriously hard to get into.

There are so many big and small chained restaurants fighting for a custom that you’re going to have to battle with. So to try and save you the misery of failing, here are some of the reasons why restaurants always do, and how you can avoid it yourself.



The main killer of any restaurant, money. Money is the main killer at any point in life, but your restaurant relies on the money of customers to keep it afloat.

When you’re starting out things are always going to be tight. You won’t have that rush of custom that you might think you will. You’ll often be scraping the barrel trying to get by.

But there are some things that small businesses do to just make things worse. Invoicing is a hard thing to get the hang of if you’ve never done it before, and getting it wrong can only add issues to your business.

There are companies out there however that will help with invoice financing for small business that you could really benefit from. It’ll leave you free to help with other issues you might be facing. When you first start out it is important not to cut corners to try and save money.

You want to be giving that 5* service right from the beginning. Make sure you’re not risking your entire venture just to have something cheaper when you could spend that little bit extra and make a ton of money.


Poor Quality

If the food is poor quality, you’re never going to get far. But we can all admit we’ve been into a restaurant at least once and had some really bad quality food.

So much so that it completely tarnishes your view of the establishment. Usually, this is done due to the kitchens being understaffed, undertrained, or just too pushed for time.

You need to make sure you’re preparing for this with your restaurant. Make sure your staff are fully trained and know how to cook the menu well. This should be tested during the recruitment stage.

If you know you’re going to have a busy night, such as a Friday or Saturday, make sure you’re putting extra staff on to cope with the pressure.


Poor Service

Customer service is either going to make or break your business. Poor customer service is literally everywhere you go, but it seems to be more prominent is the restaurant industry.

Again, this could be down to the pressure the people waiting the tables are under. Make sure service is always done with a smile if you want to keep people coming back.

These are a lot of the reasons I’ve found restaurants to close, what have you seen why restaurants to close?  Share your thoughts and comments below.


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